IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture

Buyer Profiles

IKEA

IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture such as beds and desks, appliances and home accessories. The company is the world's largest furniture retailer. Founded in 1943.

The company is keen to show leadership in adopting more environmentally friendly manufacturing processes. IKEA is the world's third-largest consumer of wood, behind The Home Depot and Lowe's.

The IKEA Concept is based on offering a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. Rather than selling expensive home furnishings that only a few can buy, the IKEA Concept makes it possible to serve the many by providing low-priced products that contribute to helping more people live a better life at home.

The firm is known for the attention it gives to cost control, operational details and continuous product development, allowing it to lower its prices by an average of two to three per cent over the decade to 2010, while continuing its global expansion.

Buying requirements

Inter IKEA Systems B.V. in the Netherlands, is the owner of the IKEA concept and trademark. It has franchise agreements with every IKEA store in the world. To read more about Inter IKEA Systems visit http://franchisor.ikea.com/index.asp

IKEA products are sold solely in stores operating the IKEA Retail System franchised by Inter IKEA Systems B.V. of the Netherlands.

Inter IKEA Systems B.V., the owner and world-wide franchisor of the IKEA Concept, aims to bring IKEA products to as many people as possible by franchising the IKEA Concept to IKEA Franchisees. Inter IKEA Systems B.V. constantly seeks market expansion, and grants new franchisees to markets/territories according to a detailed expansion plan.

Franchises are granted only to organizations and/or individuals that can secure a strong market position and market penetration in the given territory. Franchises are only granted to organizations and/or individuals that have extensive retail experience and solid local market knowledge. Opening an IKEA franchise requires a considerable investment by the IKEA franchisee.

The IKEA supplier shall ensure compliance with applicable laws & regulations relating to health and safety issues including classification, work place risk analysis, reporting and inspections by authorities. The required corrective actions from such inspections shall be documented and completed within the set time frame.

IKEA does not accept child labour. All measures to prevent child labour shall be implemented taking into account the best interests of the child

The IKEA supplier shall not make use of forced, prison, bonded or involuntary labour.

IKEA has 28 distribution centres and 11 customer distribution centres in 16 countries. Using flat packs, transporting goods where possible by rail and sea, and utilizing fuel-saving techniques allows us to be cost-effective and environmentally friendly.

Buyer’s values

IKEA products have the label "Design and Quality, IKEA of Sweden" and are sold in IKEA stores.

Low price is a prerequisite for the IKEA Concept to realise the IKEA vision - "to create a better everyday life for the many people". As the IKEA Concept aims to serve "the many people", the IKEA product range needs extremely low price levels.

“low price, but not at any price.”

Vision of the IKEA: To create a better everyday life for the many people. Their business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.

IKEA produces quality products at low prices from the beginning.They have developed methods that are both cost-effective and innovative.

Information Sources

The IKEA Group is not a publicly listed company and therefore, does not issue an annual report. Website :www.ikea.com

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